HUNTERSVILLE, N.C.—Performance Fibers will close its production facility in New Hill, N.C., and transfer production to its plant in Salisbury, N.C.
The move is in conjunction with the firm's footprint rationalization initiative, which entails a $25 million investment over the next 21 months for improvements in product quality and the creation of a product development center, said Director of Marketing Brad Leach.
“It's been a decision that's taken quite awhile for us to come to,” he said. “But when we decided that we needed to make an investment in our equipment and modernize our capabilities, we had to make some decisions.”
The New Hill facility is expected to close after all products are transferred, which the firm said is expected to be completed over then next 12-15 months. Leach said Performance Fibers plans to transfer half of the volume being displaced to Salisbury over the next 90 days.
The Salisbury facility employs 200, and New Hill's head count sits at 235. Leach said 60 new positions will be created at the Salisbury plant, and that New Hill employees will have an opportunity to apply for them. The sites are about 110 miles apart.
One reason why Salisbury was selected to remain open over New Hill was because it has the capability to service all of Performance Fibers' industrial accounts, Leach said.
“When we looked at the two sites, we could have selected to go the other way and consolidate into (New Hill),” he said. “But we didn't for lots of reasons. One of them was because Salisbury has the manufacturing flexibility to make the industrial products.”